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Rupee Rises 2nd Day in a Row Against US Dollar After SBP Decision

The Pakistani rupee rose higher 2nd day in a row against the US Dollar today after opening trade at 283 in the interbank market.

At 11:30 PM, it was largely stable against the greenback during intraday trade.

The interbank rate remained at 283 before anchoring trends for the remainder of the day. Open market rates across multiple currency counters stood in the 283-285 range today.

At close, the PKR appreciated by 0.06 percent to close at 283.61 after gaining 17 paisas against the dollar today.

The rupee closed in the green second day in a row today. On a calendar year-to-date basis, it has so far depreciated by 20.16 percent and appreciated by 0.84 percent on a fiscal YTD basis.

Overall, the rupee is down nearly Rs. 66 since January 2023. Since April 2022, it is down over Rs. 113 against the greenback. As per exchange rate movements seen today, the PKR has gained 17 paisas against the dollar.

In a key development, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) on Tuesday decided to keep the policy rate unchanged at 22 percent.

The Committee viewed that this may have implications for the inflation outlook, albeit in the presence of some offsetting developments, particularly the recent decrease in international oil prices and improved availability of agricultural produce. Further, the Committee assessed that the real interest rate continues to be positive on a 12-month forward-looking basis and inflation is expected to remain on a downward path.

Traders noted that the political spectrum is evolving and may deter further growth if, for any reason, elections are delayed. Sentiments are important for a big chunk of foreign investors and exporters. “Exchange counters are seeing normal traffic during the day. In the coming months, any breakage in current policies on the forex market may kill recovery. For now, we have peace,” one of them added.

The PKR was green against most of the other major currencies in the interbank market today. It gained four paisas against the UAE Dirham (AED), five paisas against the Saudi Riyal (SAR), 81 paisas against the Canadian Dollar (CAD), Rs. 1.27 against the Australian Dollar (AUD), and Rs. 1.63 against the British Pound (GBP).

Conversely, it lost 3 paisas against the Euro (EUR) in today’s interbank currency market.

Source: Pro Pakistani